Canadian Auto Parts Maker Gets $99 Million in Government Grants
The federal and Ontario governments announced grants today worth nearly $100 million to Canadian auto parts maker Linamar, which says it will convert that money into 1,500 new jobs and help secure more than 8,000 existing positions.
According to Bloomberg, Canada's contribution is $49 million and the Ontario government pitched in $50 million. Linamar is covering the rest of the $750 million cost of developing next-generation transmissions and drivetrains, high-efficiency engine parts and tech for electric and connected vehicles.
Navdeep Bains, Canada's Minister of Innovation, Science and Economic Development made the announcement this morning at Linamar's Frank Hasenfratz Centre of Excellence in Manufacturing, in the southern Ontario city of Guelph.
The announcement comes as the Canadian auto manufacturing industry is facing a threat of contraction as Canada and Mexico face off with the United States in a renegotiation of the North American Free Trade Agreement (NAFTA). Linamar has operations in Canada, the United States and Mexico, as well as in Europe and Asia.
U.S. President Donald Trump says he would rather renegotiate the trade agreement rather than kill it, but the deal's future remains murky. Linamar CEO Linda Hasenfratz sits on Canada's NAFTA advisory panel, which will be in Montreal later this month for the next round of NAFTA talks, in which the auto industry will be a central topic.
